What is a Del Credere agents?
A del credere agency is a type of principal-agent relationship wherein the agent acts not only as a salesperson, or broker, for the principal, but also as a guarantor of credit extended to the buyer. A del credere agent is a combination of a salesperson and an insurance firm.
What is Del Credere Commission definition?
From Wikipedia, the free encyclopedia. A del crede commission is a commission which is paid as direct commission instead of paying through someone else. Del Crede commission is that of a surety who is liable to the principal should the purchaser make default.
Is Del Credere agent a mercantile agent?
Del Credere Agent: A del credere agent is a person who ensures or guarantees his principal that the creditors of goods will pay for the goods they buy for extra remuneration. In the case of failure to pay by the third party, he needs to pay the due amount to his principal.
What is del credere commission calculated on?
A commission paid directly instead of paying through someone else is called a del credere commision. It is calculated on Total sales. Total sales include both cash sales and credit sales.
Why is del credere commission paid?
To increase the sale and to encourage the consignee to make credit sales, the consignor provides an additional commission generally known as del-credere commission. Generally, it is calculated on total sales i.e. sum of cash sales and credit sales.
What is del credere commission in consignment?
Del Credere Commission is the additional sum of payment which the consignor pays to the consignee to do extra than just selling like for taking the responsibility of collection of debt from the customers.
What is meant by mercantile agent?
A commercial agent who has authority either to sell goods, to consign goods for the purpose of sale, to buy goods, or to raise money on the security of goods on behalf of his principal.
What is the purpose of del credere commission provided by consignor to consignee?
A del credere commission is paid by the consignor to his agent for taking additional risk of recovery of debts from the consignee on an account of credit sales made by him (agent) on consignor’s behalf.
What is del credere commission and over riding commission?
Delcredere Commission: To increase the sale and encourage the consignee to make credit sales, consignor provide an additional commission called delcredere commission. Overriding Commission : It is an extra commission allowed by consignor to consignee to promote sales at higher price than invoice price.
How is del credere commission calculated in consignment?
Del-Credere commission In normal course the bad debts loss due to credit sales is the loss of consignor (because he is the owner) and not of consignee. The Del Credere commission to be calculated on total sales and not only on credit sales unless otherwise specified.